Terry Bitcoin is a digital currency that operates outside the mandate of central authorities. There are several variants of cryptocurrencies resulting from forks. These include Bitcoin Cash, Bitcoin Gold, and Bitcoin Diamond.
Bitcoin was created in 2009 by a person or group of people named after Satoshi Nakamoto. There will only ever be 21 million bitcoin. This is digital money that cannot be inflated or manipulated in any way.
The time background of Bitcoin’s birth is as follows. In late 2008, the financial crisis that originated in the United States had turned into a global financial crisis, creating a global panic and an overreaction by many countries. At the same time, the existing world financial system and the International Monetary Fund, which has a crucial influence on this system, were generally questioned. Many economists predict that this financial crisis may surpass the great crisis of the 1930s.
It was in November of that year that a research paper signed by Satoshi Nakamoto was published. Less than two months later, on January 3, 2009, the first block of Bitcoin was created, containing 50 Bitcoins, after Satoshi Nakamoto put his theoretical system of Bitcoin into action, a process known as “mining”.
The coincidence of the timing of the world financial crisis and the birth of Bitcoin does not mean that there is a direct correlation between the two. However, there is a strong historical logic behind the two isolated events of the world crisis and the birth of Bitcoin.
Bitcoin is decentralized, any two people, anywhere in the world, can send bitcoin to each other without the involvement of a bank, government, or other institution. It is intended to be used as a payment method that is immune to government oversight, transfer delays, or transaction fees. However, most businesses and consumers have not adopted Bitcoin as a form of payment yet, and it is currently too volatile to provide a legitimate alternative to traditional currencies.
Unlike a bank’s ledger, the Bitcoin blockchain is distributed across the entire network. No company, country, or third party is in control of it, anyone can become part of that network. Every transaction involving Bitcoin is tracked on the blockchain, which is similar to a bank’s ledger, or log of customers’ funds going in and out of the bank. In simple terms, it’s a record of every transaction ever made using bitcoin.
Currently, Bitcoin is mainly used as a form of investment. It can be said that its characteristics are more like commodities than traditional currencies. It extends beyond the direct influence of a single economy, and it is largely immune to changes in monetary policy. Nonetheless, there are a few other factors that can affect the price of Bitcoin. What factors affect the price of Bitcoin? Traders should know.
In 1982, David Chaum first proposed an untraceable cryptographic network payment system that allowed a person to send a string of numbers to another person, and that number could be modified by the recipient. The interest in cryptocurrencies and the historical Dutch mania for privacy largely motivated David Chaum to relocate to the Netherlands, which became a hotbed of cryptographic and mathematical research in the late 1980s, and David Chaum founded DigiCash and continued to build Internet-dependent cryptocurrencies. research.
Although David Jom’s research attracted unprecedented media attention, in the end, unfortunately, David Jom and his company made some mistakes and violated the regulations of the Dutch Central Bank. And David-Jom as a compromise had to agree to sell the products developed by the company to the bank. This adjustment, which gave DigiCash a good expectation – an attempt to create a viable digital cash field through multiple banks – ended up in bankruptcy in 1998.
In 1998, Wei Dai published an article about the creation of an anonymous, distributed electronic cash system called “b-money”. During the same period, Nick Szabo also invented “Bit gold”, a mechanism very similar to that of Bitcoin, in which users compete to solve “proof-of-work problems” and then cryptographically string together the results of the solutions.
Bit gold is very similar to Bitcoin in that users compete to solve “proof-of-work” problems, and then the results of the solutions are cryptographically linked together and publicly distributed, thus constituting a system of property authentication.
Bit gold is widely recognized as the “precursor to bitcoin”. Later, Hal Finney developed a “reusable proof of work” based on Bit gold.
All of this led us to 2008, when the “bitcoin.org” domain name was quietly and anonymously registered. On October 31 of that year, a man calling himself “Satoshi Nakamoto” published a paper on a cryptography website called “Bitcoin: A Peer-to-Peer Electronic Currency System”. 10 days later, a project called bitcoin project on sourceforge.net. The world’s first 50 bitcoins were created in early 2009.
Satoshi Nakamoto seems to have disappeared from the Internet completely after building the Bitcoin system, and no one has ever seen his true face. Since then, the Bitcoin project has been maintained by two former Google engineers, but even these two men claim to have never met Satoshi Nakamoto.
The first fair exchange rate for bitcoin was generated in 2010 by a spontaneous transaction between users on the bitcointalk forum. The transaction involved a programmer buying a pizza for 10,000 bitcoins. 2011 saw Wikileaks, the Freedom Network, the Singularity Institute, the Internet Archive, the Free Software Foundation, and several other organizations begin accepting bitcoin donations.
In October 2012, BitPay, a global provider of bitcoin payments, released a report that more than 1,000 merchants are accepting bitcoin payments through their payment systems.
In November 2012, the WordPress blogging platform announced that it was accepting bitcoin payments, and also claimed that bitcoin could help Internet users in areas such as Kenya, Haiti, and Cuba that were suffering from international payment system blockades to purchase services.
In April 2013, the Pirate Bay Chinese website and EZTV American Movie Source began accepting bitcoin donations. In the same month, the Sichuan Province of China was hit by the Ya’an earthquake, and the One Foundation, a public fund, announced that it would accept bitcoin as an earthquake donation.
By 2017, Bitcoin had become popular worldwide. Subsequently, led by Bitcoin, various cryptocurrencies have emerged into people’s lives.
